Commercial Banking and Financial Services

Banks and savings institutions in the United States are financial businesses, chartered and supervised by either state or federal government agencies to provide financial services for the public. Banks collectively administer hundreds of billions in resources and millions of dollars more in trust funds and other accounts. Individual banks act as intermediaries for the movement of money, credit, and capital to wherever they are needed within the economy. It is estimated that 90 percent of all payments in the United States are made by bank checks. Debit cards look like credit cards but draw from the user’s checking account. Today, most automobiles, home appliances, and houses are bought through bank consumer loans. Inventories, equipment, and machinery for business and industry are financed by term loans made through bank commercial departments.